What impact is Bitcoin having on the Spanish hotel market?
According to a survey by https://lnroute.com/ 77% of hotels in Spain do not accept bitcoin payments, even though they know this cryptocurrency exists, and some of them (23%) have already had customers requesting it.
7 ways Bitcoin benefits the Spanish hospitality industry.
- Increase in international tourism.
The adoption of Bitcoin in the hospitality industry would have a positive impact on international tourism in Spain since these digital assets are used for currency exchange transactions that allow travelers to pay directly upon arrival at their destination, where cryptocurrencies are accepted.
The easiest way to do this is through online exchanges through which the traveler can exchange dollars or euros for bitcoins, which would be converted into local currency at the destination.
- Payment by credit card from abroad. The use of cryptocurrencies as a means of payment allows tourists to travel only with their mobile device without bringing large sums of cash or withdrawing them from ATMs, which have high commissions for accepting transactions abroad. .
In addition, this mechanism would allow thousands of Spanish hotels to benefit from international reservations.
- Tracking digital assets and the hotel chain using them.
Everyone knows where the money goes with cryptocurrencies, so each property could be assigned a wallet associated with its corresponding property or IBAN to receive funds without intermediaries.
- Reduce commissions for receiving payments.
Using Bitcoin would reduce the payment commission, which is usually between 3% and 4% since there are no intermediaries involved in this type of international exchange.
- Without the need for financial institutions or credit payment companies, transactions can be completed faster.
The ability to pay faster with Bitcoin at any time of the day or night, without waiting for transactions to be cleared by banks or credit card companies, usually between 3 days and four weeks.
- Exchange rate changes are protected against.
Using Bitcoin will protect hotel owners from changes in the value of the currency since there is no fixed reference value; therefore, they could not be affected by the devaluation or remonetization of silver.
- The growth of cryptocurrencies as a parallel currency.
Like any other currency, Bitcoin has an exchange rate with the Euro, so its value can be higher than the Euro, allowing digital assets to be used as a parallel currency in international hotel reservations.
7 things how Bitcoin harms the hospitality industry in Spain.
- This new type of digital asset is still little known. It has high volatility, and its development can change your business model because it is still difficult to predict how Bitcoin and other cryptocurrencies will behave in a few years.
- The lack of regulation or legal protection for this type of payment. There is still no regulatory system that controls this new type of currency, so it could be used to finance illicit activities such as money laundering, leaving tourism businesses vulnerable to misuse, payment or disputes.
- The lack of compatibility with the current network. Currently, no company accepts payment in digital assets or compatible systems for this payment method, so companies that use alternative payment methods to cryptocurrencies must have an interface allowing them to change these tokens into euros at any time.
- Tax implications. Bringing the Bitcoin price down to zero is not punishable, but if the tokens are converted into euros, there will be tax implications. There may also be reporting obligations for companies with transactions on their accounts.
- Lack of stability and security. Nobody backs cryptocurrencies, so they have no guarantee or protection against possible changes in their value, unlike the euro guaranteed by the Eurosystem, which is made up of the European Central Bank and the national central banks. .
- The inability to pay by credit card or bank transfer. You cannot use cryptocurrencies for online purchases on sites that only accept traditional payment methods. For example, hotels have to wait for someone to buy digital assets as payment, which can take time because they are still little known.